Confidence continues to build in us

Photo credit: Cyndie

Confidence is continuing to build in the US housing market, despite concerns surrounding land and labour.

Builder confidence has been positive for three months in a row, according to the latest National Association of Homer Builders/Wells Fargo Housing Market Index, with August 2015 seeing confidence rise to its highest level since November 2005.

"Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015,” says NAHB Chief Economist David Crowe. “Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year."

Perception of buyer traffic and current sales conditions both improved, while expectations for future sales held steady.

The upbeat mood among NAHB members follows the organisation's latest report, which found that markets in 75 of the approximately 360 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the second quarter of 2015 - 13 more markets than a year ago. 66 per cent of markets have shown an improvement year-over-year, according to the NAHB.

"The markets are gradually improving and economic and job growth continue to strengthen, which bodes well for housing for the remainder of the year," comments NAHB Chairman Tom Woods.

"Of the three elements in the LMI (house prices, permits and employment), house prices have had the broadest recovery, with 345 markets returning to or exceeding their last normal level,”" adds Crowe. "Meanwhile, 64 markets have met or exceeded their normal employment levels. The housing permit level has made the least progress toward normality, with only 26 markets at or above their last normal level."